Gearing up your business for the summer season

As we enter the second half of the year it is time to make sure your business is fit and ready for the rest of 2013.

To ensure this is the case here are a few tips to help you.

Review your budget

Take a look at your budget for the start of the year and review your current status. Have you incurred costs that are higher than previously planned?

If so, you may need to adjust your budget to ensure you spend less in the next six months. Consult with your purchasing manager on savings that can be made.

If you are under budget and have spent less than anticipated you may be able to spend additional money on investing in the business.

Review your income

Have your sales reached your target for the first six months of the year? If so, analyse how you can maintain this through the rest of the year.

Are there any one-off factors likely to negatively impact on your sales revenue over the next six months?

If your business has not reached sales targets then the management team needs to analyse why. Have you lost a key customer? If so, what strategy is in place to win back the customer or replace it with new customers.

Are sales down due to one-off factors? If so, what are they and what can the business do to change this?

Review your cashflow

Review your cashflow to identify any factors that are negatively impacting on your cashflow. Ensuring you have funds available to pay off your costs or fund necessary investment to expand the business is vital.

If you are well below where you expected to be in terms of cash available, refer back to your projected sales and costs and work out where the difference comes from.

Once this has been identified, speak to other senior managers to work out how you can get back on track.

Seasonal factors

Are there any seasonal factors that you did not take into account in your budget, sales forecast and cashflow? If so, how will they impact on your firm’s finances over the rest of 2013.

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